Maplecroft, in a recent report, stated that emerging economies in the South Asia have the highest financial risks related to tropical cyclones and flooding and other natural hazards alike. The risk analyst also claimed that according to their Natural Hazards Risk Atlas, the 10 countries which face greatest exposure to natural hazards include Bangladesh, India, Myanmar, Vietnam and Philippines.
The financial risks for these countries are high since the trading hubs and cities are highly exposed to natural hazards such as cyclones and flooding, and the point is extended further for capability lack to recover from such natural disasters. Experts from Maplecroft also stressed those natural disasters in the aforementioned South Asian countries would not only have significant impact on their economic output, but also on foreign businesses as well. Maplecroft also warned of risks including social unrest, corruption and food security which could finally lead to political risk in the South Asian countries.
Experts have indicated that countries such as Philippines and Bangladesh will need years to recover from such hazards. Recent floods in Thailand wiped out some 9% of its GDP. Furthermore, the infrastructure could not totally be repaired in one year. On the contrary, the economy of Japan returned to its expected levels just a year after the country was hit by the fourth largest earthquake ever recorded.
The analyst further added that in absolute terms USA, Mexico, China, Japan and Taiwan have the highest risk. However, these countries have strong governance, disaster preparedness, regulations and economy, and therefore, posses the capacity for a quick recovery at times when the natural hazards strike.
The financial risks for these countries are high since the trading hubs and cities are highly exposed to natural hazards such as cyclones and flooding, and the point is extended further for capability lack to recover from such natural disasters. Experts from Maplecroft also stressed those natural disasters in the aforementioned South Asian countries would not only have significant impact on their economic output, but also on foreign businesses as well. Maplecroft also warned of risks including social unrest, corruption and food security which could finally lead to political risk in the South Asian countries.
Experts have indicated that countries such as Philippines and Bangladesh will need years to recover from such hazards. Recent floods in Thailand wiped out some 9% of its GDP. Furthermore, the infrastructure could not totally be repaired in one year. On the contrary, the economy of Japan returned to its expected levels just a year after the country was hit by the fourth largest earthquake ever recorded.
The analyst further added that in absolute terms USA, Mexico, China, Japan and Taiwan have the highest risk. However, these countries have strong governance, disaster preparedness, regulations and economy, and therefore, posses the capacity for a quick recovery at times when the natural hazards strike.
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